Government Regulation
February 18, 2022
DOJ & The Supply Chain
DOJ expands scrutiny of possible supply-chain profiteers
Trucking, warehousing, 3PLs could be in antitrust division’s crosshairs
John Gallagher, Washington Correspondent Follow on Twitter Thursday, February 17, 2022 2 minutes read
Listen to this article 0:00 / 3:32 BeyondWords
The U.S. Department of Justice is now targeting a wider swath of transportation companies that it deems may be using supply chain disruption to gouge customers
The initiative, which DOJ announced Thursday, broadens the scope of the Biden administration’s heightened scrutiny of anticompetitive behavior in various industry segments, including transportation.
“The lingering challenge of supply chain disruptions from the COVID-19 pandemic has created an opportunity for criminals to fix prices and overcharge customers,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to collaborate and investigate schemes that violate our antitrust laws and stifle our economic recovery.”
As part of the initiative, DOJ’s Antitrust Division is prioritizing existing investigations where competitors may be exploiting supply chain disruptions for profit and is “undertaking measures to proactively investigate collusion in industries particularly affected” by supply chain disruptions, the agency warned.
“For those who seek to exploit supply chain disruptions for their own illicit gain, the Antitrust Division, along with the FBI, will investigate and prosecute criminal violations of the antitrust laws, including agreements between individuals and businesses to fix prices or wages, rig bids or allocate markets.”
Up to now, DOJ’s stepped-up oversight of anticompetitive behavior in the transportation sector has focused on the maritime industry and railroads, where there has been evidence that the relatively few players have wielded their market power to raise rates.
In July, DOJ and the Federal Maritime Commission signed a first-time agreement to sharpen economic oversight of foreign ocean carriers serving in the U.S. international container trades. The agreement came days after President Joe Biden signed an executive order aimed at curbing potential anticompetitive behavior among 72 industries, including among ocean carriers and freight railroads.
But Thursday’s announcement should now put companies involved with trucking, warehousing, 3PLs and last-mile delivery on notice as well, according to one trade expert.
“Certainly the focus here is on other elements of the supply chain that haven’t gotten as much attention as ocean carriers and marine terminals but are needed to get cargo to and from inland destinations,” Gerald Morrissey, a partner with the law firm Holland & Knight, told FreightWaves.
“This is really saying that any company in the supply chain, particularly those that are not subject to some form of antitrust immunity [such as ocean carriers and marine terminals] could be in the crosshairs for potential complaints by customers or competitors with this increased focus from DOJ.”
As part of the initiative, the Antitrust Division has formed a working group with the Australian Competition and Consumer Commission, the Canadian Competition Bureau, the New Zealand Commerce Commission, and the United Kingdom Competition and Markets Authority, focusing on collusion in global supply chains.
“The working group is developing and sharing intelligence, utilizing existing international cooperation tools, to detect and combat collusive schemes,” DOJ stated.
February 18, 2022
DOJ & The Supply Chain
DOJ expands scrutiny of possible supply-chain profiteers
Trucking, warehousing, 3PLs could be in antitrust division’s crosshairs
John Gallagher, Washington Correspondent Follow on Twitter Thursday, February 17, 2022 2 minutes read
Listen to this article 0:00 / 3:32 BeyondWords
The U.S. Department of Justice is now targeting a wider swath of transportation companies that it deems may be using supply chain disruption to gouge customers
The initiative, which DOJ announced Thursday, broadens the scope of the Biden administration’s heightened scrutiny of anticompetitive behavior in various industry segments, including transportation.
“The lingering challenge of supply chain disruptions from the COVID-19 pandemic has created an opportunity for criminals to fix prices and overcharge customers,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to collaborate and investigate schemes that violate our antitrust laws and stifle our economic recovery.”
As part of the initiative, DOJ’s Antitrust Division is prioritizing existing investigations where competitors may be exploiting supply chain disruptions for profit and is “undertaking measures to proactively investigate collusion in industries particularly affected” by supply chain disruptions, the agency warned.
“For those who seek to exploit supply chain disruptions for their own illicit gain, the Antitrust Division, along with the FBI, will investigate and prosecute criminal violations of the antitrust laws, including agreements between individuals and businesses to fix prices or wages, rig bids or allocate markets.”
Up to now, DOJ’s stepped-up oversight of anticompetitive behavior in the transportation sector has focused on the maritime industry and railroads, where there has been evidence that the relatively few players have wielded their market power to raise rates.
In July, DOJ and the Federal Maritime Commission signed a first-time agreement to sharpen economic oversight of foreign ocean carriers serving in the U.S. international container trades. The agreement came days after President Joe Biden signed an executive order aimed at curbing potential anticompetitive behavior among 72 industries, including among ocean carriers and freight railroads.
But Thursday’s announcement should now put companies involved with trucking, warehousing, 3PLs and last-mile delivery on notice as well, according to one trade expert.
“Certainly the focus here is on other elements of the supply chain that haven’t gotten as much attention as ocean carriers and marine terminals but are needed to get cargo to and from inland destinations,” Gerald Morrissey, a partner with the law firm Holland & Knight, told FreightWaves.
“This is really saying that any company in the supply chain, particularly those that are not subject to some form of antitrust immunity [such as ocean carriers and marine terminals] could be in the crosshairs for potential complaints by customers or competitors with this increased focus from DOJ.”
As part of the initiative, the Antitrust Division has formed a working group with the Australian Competition and Consumer Commission, the Canadian Competition Bureau, the New Zealand Commerce Commission, and the United Kingdom Competition and Markets Authority, focusing on collusion in global supply chains.
“The working group is developing and sharing intelligence, utilizing existing international cooperation tools, to detect and combat collusive schemes,” DOJ stated.
February 15, 2022
Wood Structural Panel Primer
Look for quality mark on wood structural panels
By Larry Adams February 14, 2022 | 9:55 am CST
TACOMA, Wash. — When ordering or specifying wood structural panels, it is important to receive the right panel for the application, and equally important that the panel is manufactured with the required quality, according to the APA – The Engineered Wood Association.
Wood structural panels trademarked by APA meet both criteria, based on qualification tests in compliance with Product Standards PS 1 for plywood and PS 2 for plywood and oriented strand board (OSB), as well as on-going quality assurance tests on every production period with a robust quality assurance system. In Canada, APA panels are trademarked to similar standards, which include CSA O121 for Douglas fir plywood, CSA O151 for Canadian softwood plywood and CSA O325 for OSB and plywood.
APA’s Quality Assurance System
APA’s quality assurance system includes review of mill quality procedures, independent third-party audits of the mill quality program and regular independent testing that verifies the quality and performance of wood structural panels. Also, APA’s quality assurance system has proactive steps to ensure any product quality issues are addressed promptly and properly in the manufacturing plant.
APA-certified products are authorized to bear a trademark clearly identifying the appropriate standard and product application. The qualification and quality assurance system apply evaluation methods that are appropriate for many end-use applications, including span ratings for roof, wall and floor construction, and for a wide variety of other uses, such as in concrete forming, upholstered furniture frames, recreational vehicles and other manufactured products where materials with high strength-to-weight ratios, durable exterior adhesives and known mechanical properties are important.
Occasionally, imported wood structural panels are sold in North America. Those imported panels may be manufactured with foreign wood species of a low density or with adhesives of unknown durability, or they may be qualified by testing to a foreign standard that is not developed and intended for North American markets. Furthermore, the in-plant quality program, and especially the independent third-party quality assurance system of imported panels might be untested and unproven in North America.
In the past, APA has been asked to evaluate imported panels available in local markets by testing them with requirements specified in PS 1 and PS 2. In some cases, the panels were found to be lacking in stiffness and bond quality and emitting formaldehyde in excess of certified products conforming to North American standards.
Formaldehyde regulations and structural wood products
Since North American structural wood products produced under the PS 1 and PS 2 standards are designed for construction applications governed by building codes, they are manufactured only with moisture-resistant adhesives that meet Exterior or Exposure 1 bond classifications.
These adhesives, such as phenol formaldehyde and diphenylmethane diisocyanate (MDI), are chemically reacted into stable bonds during pressing. The final products have such low formaldehyde emission levels that they easily meet or are exempt from the world’s leading formaldehyde emission standards and regulations.
Learn more about formaldehyde emission standards and regulations for structural wood products. Specifying APA-trademarked panels manufactured by trusted North American manufacturers is an assurance of getting the right product for the right application at a recognized quality level.
For more information, visit https://www.apawood.org.
https://www.woodworkingnetwork.com/news/look-quality-mark-wood-structural-panels
February 15, 2022
Wood Structural Panel Primer
Look for quality mark on wood structural panels
By Larry Adams February 14, 2022 | 9:55 am CST
TACOMA, Wash. — When ordering or specifying wood structural panels, it is important to receive the right panel for the application, and equally important that the panel is manufactured with the required quality, according to the APA – The Engineered Wood Association.
Wood structural panels trademarked by APA meet both criteria, based on qualification tests in compliance with Product Standards PS 1 for plywood and PS 2 for plywood and oriented strand board (OSB), as well as on-going quality assurance tests on every production period with a robust quality assurance system. In Canada, APA panels are trademarked to similar standards, which include CSA O121 for Douglas fir plywood, CSA O151 for Canadian softwood plywood and CSA O325 for OSB and plywood.
APA’s Quality Assurance System
APA’s quality assurance system includes review of mill quality procedures, independent third-party audits of the mill quality program and regular independent testing that verifies the quality and performance of wood structural panels. Also, APA’s quality assurance system has proactive steps to ensure any product quality issues are addressed promptly and properly in the manufacturing plant.
APA-certified products are authorized to bear a trademark clearly identifying the appropriate standard and product application. The qualification and quality assurance system apply evaluation methods that are appropriate for many end-use applications, including span ratings for roof, wall and floor construction, and for a wide variety of other uses, such as in concrete forming, upholstered furniture frames, recreational vehicles and other manufactured products where materials with high strength-to-weight ratios, durable exterior adhesives and known mechanical properties are important.
Occasionally, imported wood structural panels are sold in North America. Those imported panels may be manufactured with foreign wood species of a low density or with adhesives of unknown durability, or they may be qualified by testing to a foreign standard that is not developed and intended for North American markets. Furthermore, the in-plant quality program, and especially the independent third-party quality assurance system of imported panels might be untested and unproven in North America.
In the past, APA has been asked to evaluate imported panels available in local markets by testing them with requirements specified in PS 1 and PS 2. In some cases, the panels were found to be lacking in stiffness and bond quality and emitting formaldehyde in excess of certified products conforming to North American standards.
Formaldehyde regulations and structural wood products
Since North American structural wood products produced under the PS 1 and PS 2 standards are designed for construction applications governed by building codes, they are manufactured only with moisture-resistant adhesives that meet Exterior or Exposure 1 bond classifications.
These adhesives, such as phenol formaldehyde and diphenylmethane diisocyanate (MDI), are chemically reacted into stable bonds during pressing. The final products have such low formaldehyde emission levels that they easily meet or are exempt from the world’s leading formaldehyde emission standards and regulations.
Learn more about formaldehyde emission standards and regulations for structural wood products. Specifying APA-trademarked panels manufactured by trusted North American manufacturers is an assurance of getting the right product for the right application at a recognized quality level.
For more information, visit https://www.apawood.org.
https://www.woodworkingnetwork.com/news/look-quality-mark-wood-structural-panels
January 20, 2022
Chinese Olympics Shutdown Update
Burst! Nearly 10,000 Chemical Plants Shut Down! “Suspension” Comes Anytime!
ECHEMI 2022-01-20
Recently, the Ministry of Industry and Information Technology announced that in order to ensure the safe and smooth holding of the Beijing 2022 Winter Olympics and Winter Paralympics, maintain the order of radio waves in venues and special control areas, and ensure the normal use of various types of radio equipment used for event business, the decision was made. During the Beijing 2022 Winter Olympics and Winter Paralympics, radio control will be implemented in parts of Beijing and Hebei Province. It is also clarified that those who violate the provisions of this notice shall be handled by the radio management agency in accordance with the relevant provisions of the state and this city; if a crime is constituted, it shall be transferred to the judicial organ for criminal responsibility according to law.
In addition to the regulation of radio, other industries have recently expressed that they have received “control notices”. A chemical company in Shandong responded that it received an oral notice from a superior to stop production from January 30 to February 20 and from March 4 to March 13 this year. The paint procurement network has communicated and verified with many chemical companies and found that this is not an isolated case. Many chemical companies in Hebei, Henan and other regions said that they have been notified that they are about to stop production.
The reasons for the shutdown of production are basically the same for all companies. Winter is the heating season, and it is prone to frequent heavy pollution. Therefore, the situation of staggered peak shutdown and production restrictions persists. In addition, some companies said that companies with boilers must stop production, which is equivalent to “seal” for chemical companies.
Chemical companies are no strangers to production suspensions and production restrictions. In 2021, chemical companies have experienced shutdowns due to the epidemic, dual control of energy consumption and production restrictions, environmental protection shutdown orders during the heating season, and multiple rounds of emergency response in heavily polluted weather. Production is discontinued. I finally got through 2021 and ushered in 2022. I didn’t expect to encounter many obstacles in the beginning of the year. The overseas epidemic has invaded, and the delivery of high-end imported raw materials has been delayed. Due to the epidemic, many places in China have closed high-speed entrances and exits, temporary traffic control, and enterprises have stopped work and production. Some chemical companies were planning to close the holiday early, but they did not expect to receive a notice before the holiday, and arranged to stop work for two months after the year, which made many chemical workers lament.
Tens of thousands of chemical companies may be affected, and a variety of chemical products are facing “out of stock”!
Once production is stopped and restricted, the inventory in the market will definitely be affected. So, what chemical products will be affected by the suspension of production and production in the above major chemical provinces? According to incomplete statistics from the Paint Purchasing Network, Shandong, Henan, and Hebei are all important chemical towns, and there are many industrial chains of chemical products.
Shandong: There are more than 7,700 chemical enterprises, and the output of many chemical sectors ranks first in the country
Shandong is a major chemical province, and the total chemical economy has ranked first in the country for 28 consecutive years. The chemical products of national key statistics are all distributed, forming the “seven major sectors” industrial system of refining, chemical fertilizer, inorganic chemical, organic chemical, rubber processing, fine chemical, and synthetic materials, and the output of key chemical products ranks in the forefront of the country. At present, there are 84 chemical parks in Shandong, with more than 7,700 chemical enterprises.
From the perspective of supply, the output of chemical products in Shandong Province accounts for a high proportion of the country, and it is concentrated in traditional industries such as chlor-alkali, plastics, and fertilizers. The output of crude oil processing, tires, fertilizers, pesticides, caustic soda and other products ranks among the top in the country. From the perspective of industrial classification, Shandong’s oil refining (including refining and chemical integrated enterprises) and chemical (including petrochemical, coal chemical, salt chemical, tire, new materials, fine chemical) enterprises have relatively large production capacity.
Local companies include Sinopec, Wanhua Chemical, Hengli Petrochemical, Rongsheng Petrochemical, Enjie, Baofeng Energy, China Jushi, Hualu Hengsheng, Tinci Materials, Dongming Petrochemical, Lihuayi, Haike Group, Jingbo Group, Qilu Petrochemical, Luxi Chemical, Lubei Chemical, Shida Shenghua, Qixiang Tengda.
Henan: more than 2,000 well-known chemical companies, including petrochemical and coking industry chains
Henan Province includes 47 chemical industry parks (including chemical industry agglomeration areas, chemical industry characteristic industrial parks, professional chemical industry parks, etc.) and more than 2,000 well-known chemical enterprises. Mainly in petrochemical, coking-based. Henan Province proposes to build a nationally important 500 billion-level modern industrial cluster by 2025. Cultivate industrial chains of hundreds of billions of dollars such as modern coal chemical industry and high-end petrochemical industry, develop characteristic industrial chains such as chlor-alkali chemical industry, fluorine chemical industry, functional materials, etc., accelerate the transformation of traditional chemical industry to fine chemical industry, and improve the intrinsic safety and green level of the chemical industry.
Well-known chemical companies in Henan include Longbai Group, Shenma Co., Ltd., Polyfluoride, Ruifeng New Materials, Xinxiang Chemical Fiber, Henan Energy Chemical Group Co., Ltd., Haohua Yuhang Chemical Co., Ltd., etc.
Hebei: more than 2,200 well-known chemical companies, with a wide distribution of salt chemical and fine chemical industry chains.
Hebei Province is an important chemical base in China. The top 500 chemical companies account for about 8% of the country’s total, second only to Shandong Province and Jiangsu Province. Including 19 chemical parks and more than 2,200 well-known chemical companies.
Hebei Province has formed an industrial system focusing on oil and gas exploration, oil refining, coal chemical industry, salt chemical industry and fine chemical industry. The output of caustic soda accounts for about 4% of the national output, and the output of soda ash accounts for more than 12% of the national output. Well-known chemical companies include Sanyou Chemical, Longxing Chemical, Jizhong Energy, Cangzhou Dahua, Jianxin Co., Ltd. and Kailuan Co., Ltd.
It is not difficult to see that there are more than 10,000 well-known chemical companies in the above regions, covering Wanhua Chemical, Hengli Petrochemical, Luxi Chemical, Shida Shenghua, Qixiang Tengda, Longbai Group, Shenma, Dofluoroduo, Sanyou Chemical, Cangzhou Dahua and many other well-known chemical companies. Although the local listed chemical companies have not yet issued an announcement on the suspension of production and production, the “all factories shut down” and “all those with boilers” mentioned by local companies have obviously brought anxiety to many companies.
As the Spring Festival is approaching, more and more companies are beginning to take holidays, but no one can say with certainty when they can resume work after the festival, or when they will resume production at full capacity. That is to say, large factories in these areas will face the dilemma of shutting down production, and the market inventory of chemical products in the coal chemical, petrochemical, coking refining and fine chemical industry chains will all have the risk of sharp decline. A wave of out-of-stocks.
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